Proven Types of Promotions That Will Help You Win Over Customers

Are you looking for ways to increase traffic and sales for your business? One of the best ways to do that is to know how to use the right types of promotions. The right promotions can do a lot for your small business, from short-term flash sales to ongoing loyalty rewards; the possibilities to promote your small business are endless.

This article surveys proven promotional techniques that can help you increase sales. When you want to launch a new product, move surplus inventory, or create brand awareness, the right promotion can be very important.

What is Promotion in Marketing

Promotion in marketing is the way businesses communicate with their audiences about a product or service to create awareness, interest, and sales.

Moreover, promotion is one element of the marketing mix, which includes product, price, and place. Promotion is about letting the public know what a business has to offer and why they might want it.

You know what it’s about. Now, let’s look at the types of promotions marketing your business can use. 

What are the Different Types of Promotions

This outline explains the different categories of promotions. 

1. Sales Promotions 

This is a marketing tactic that encourages customers to purchase a product in the short term or encourages customers to buy a product they have not previously used.  It is typically an incentive, discount or special offer.  Whereas branding is generally generated over a long period, sales promotion often creates a sense of urgency in the buyer, who then acts immediately.

Sales Promotion Example:

Consider  you run an online clothing store, and you want to attract new customers while motivating repeat purchases from existing ones. You decide to launch a coupon-based sales promotion.

Types of Sales Promotions:

• Discount: Offer a 20% off coupon for first-time customers and a 10% off coupon for returning customers.
  
• Coupon Code: Provide an easy-to-remember code like “WELCOME20” for first-time customers and “THANKYOU10” for repeat customers.
  
• Expiration Date: Set the coupon to expire in 7 days to create urgency (e.g., “Use by [Date]”).
  
• Conditions: Customers need to make a purchase of $50 or more to apply the coupon.

2. Product Promotions

Attempting to boost sales and create awareness about a product through this marketing effort constitutes an act of selling. Common ways to boost the sale of any product include offering price discounts, providing free samples, bundling promotional offers, or including gifts with purchase.

Types of Product Promotions:

• Free Samples: Providing free samples gives customers an opportunity to familiarize themselves with a new product before making a purchase decision. These samples become an excellent tool for attracting new customers to try out specific products. 

For example, a skincare company offers its new moisturiser as a free sample-sized bottle to customers with every purchase. This way, customers can test it out with no risk of committing to a full-size product purchase. Customers who enjoy using the sample are most likely to come back and buy the full-size version.

• Product Bundles: Bundling in promotion is a strategy where businesses offer multiple products together as a package at a discounted price. The idea is to encourage customers to buy more by providing added value.

For example, a tech store has a special offer where customers can purchase a laptop, mouse, and keyboard as a package at a lower price instead of buying each item individually. This encourages buyers to purchase multiple items while saving some money.

• Gift with Purchase: Offering a gift with purchase is a common product promotion where there is an added value for the customer. It offers and incentivizes customers to buy more with gain of a free product or gift.

3. Marketing Promotions

A marketing promotion is any activity or approach that is taken to grab people’s attention and interest in a product and/or brand. 

Marketing Promotions Examples:

• Contests and Promotions: These promotions enable customers to participate in an activity to win a prize, thereby increasing engagement and visibility. 

For example, a travel company could run a sweepstakes for one lucky participant to win a free vacation package. 

• Special Email Campaigns:  An email campaign that sends offers or announcements exclusively to customers to drive a purchase or increase engagement.  

For example, a retailer offers new arrivals and sends targeted emails with a 20% off promotion exclusively to subscribers, which can drive immediate sales.

4. Discount-Based Sales Promotions

This provides customers with a price reduction on products or services to encourage them to purchase the items immediately. Discounts can come in the form of a percentage off, Buy One Get One Free (BOGO), or seasonal sales discounts to drive sales and attract customers.

Examples of Discount Based Sales Promotion: 

• Percentage Discounts: Offering customers a discount of a defined percentage off the list price, for example, a 20% discount. A store may offer discounts on everything, for example, by offering 20% off everything for a limited time.
  

• Free Shipping: Offering free delivery on purchase, usually accompanied by a minimum amount to spend. An online store may offer free shipping on orders over $50 to increase the basket size.

• BOGO (Buy One Get One Free): In this promotion, customers can buy one item and receive one item free.

For example, a coffee shop may offer a “buy one, get one free” deal on its best-selling coffee. This increases sales and increases the average order value.

Note: While BOGOs do increase sales, limiting these promotions is essential. If customers believe your product is of lower value, it will ultimately lead to lower sales in the long term. It is crucial to limit the offer carefully to avoid being overused.

5. Value-Added Sales Promotions

This provides extra value to the customer at no cost, instead of lowering the price of the product. Rather than providing a discount, the provider adds value by offering a free gift or a bonus product to entice the customer to make the purchase.

Value Added Sales Promotions Examples:

• Loyalty Rewards: This type of promotion encourages repeat purchases by giving consumers an incentive to be loyal and become repeat customers. Rather than markdowns, for example, they just keep track of points or offer rewards for continued purchasing.

Another example is a beauty brand that has a loyalty program allowing customers to earn points for each dollar they spend. These points can later be exchanged for discounts or gifts.

6. Experience-Oriented Promotions

Experience-Based Promotions prioritise crafting memorable and engaging experiences for customers over discounting. These types of promotions also aim to tap into the customer’s emotions and make the purchase a rewarding or emotional experience.

Let’s see these types of promotions:

• Flash Sales: This creates a sense of urgency by offering discounts for a limited time, pushing consumers to make quick decisions. This fleeting shopping chance is seen as an exciting, time-sensitive thrill.

• Seasonal or Holiday Promotions: Any promotion associated with a season/holiday gives exclusives and themed experiences. With the festivities in the air, customers shop under huge demand.

• Limited-Time Exclusives: Whenever you offer a fantastically short-lived product or experience, it develops the quality of exclusivity and urgency. A product of limited edition or an event that the customer just cannot miss out on.

Consider a coffee shop might create a seasonal drink for November; it should be made exclusively during that time of year so that it can promote an air of excitement for the customer to get in and taste it before the time is gone.

7. Digital and Interactive Promotions

These types of promotions are online activities that actively engage customers through interaction, such as contests, games, and polls. The interactivity aspect of these promotions encourages customers to engage, ultimately leading to increased brand awareness and loyalty.

For example:

• Referral Programs: Customers invite their friends or family to shop in-store in exchange for incentives, such as discounts or free products.

For example, A clothing store offers a referral program where customers earn a $10 store credit for every friend they refer who makes a purchase.

• Social Media Contests/Giveaways: These promotions ask consumers to engage with the brand on social media, then like, comment, or share posts with the opportunity to win a prize.

For example, A beauty brand will ask its followers to tag friends and share a post on Instagram for a chance to win a free skincare kit.

Many people are confused about the distinction between promotion and marketing, but here we can clarify the differences that can help you make a more informed decision. 

Is Promotion and Marketing the Same?

Promotion and marketing are closely related but distinct concepts. While they are connected, they serve different purposes and have key differences.

Aspect	Promotion	Marketing
Definition	A tactic aimed at raising awareness and driving sales.	A broader strategy to understand customer needs and deliver products/services.
Purpose	To increase short-term sales and visibility.	To create long-term customer relationships and brand positioning.
Scope	A part of the marketing mix.	Includes product development, pricing, distribution, and promotion.
Focus	Immediate sales, offers, or incentives.	Comprehensive customer satisfaction and market positioning.
Time Frame	Short-term, often time-sensitive.	Long-term, ongoing strategy.

Wrap Up

Promotions in general are a battering ram toward pushing through your business goals. Whether you need to drive sales, enhance customer loyalty, or simply make a splash about your brand, a great promotion can help. 

By aligning your promotions with your business objectives and the demands of your customers, you can make a lasting impact. Strategise to avoid point-and-shoot tactics that can harm your business, such as bad press or meteoric price drops.

Ready to Turbocharge Your Sales? Get started with the correct types of promotions now! Get in touch with us for the best advice and tailor-made solution you can and complete the form to the right to let us help take your business to the next level!

FAQs

1. How can sales promotions boost customer loyalty?
This can boost customer loyalty by rewarding repeat purchases, creating positive brand experiences, and encouraging customers to keep coming back for future deals.

2. What are different types of promotions?
The best types of promotions for businesses include sales promotions, product promotions, discount-based sales, value-added promotions, and interactive digital promotions

3. Can I use more than one promotion at once?
Yes, but be sure they help each other and keep away from poor or useless products. 

4. How do I pick the best promotion for my business?
Think about your goal, then decide – what kind of promotion do you want? It could be to up sales, grow your brand, or keep customers coming back.

5. Are discounts the only way to promote?
No, you can also use product bundles, free gifts, referral schemes, and contests.